A lucrative investment opportunity with high margins and explosive growth!
Cannabis stocks are back in vogue as legalization spreads and brands gain market share. One promising investment opportunity is Gage Growth Corp. The firm is growing at an explosive pace, margins are going up significantly, and top-notch brands are requesting to be brought on board.
The MJ space is a blossoming industry shifting from the fragmented stage into a more streamlined and established position.
The companies that will thrive and survive are likely to be servicing the entire supply chain from R&D to distribution and sale of medical and recreational MJ. And this is precisely why Gage Growth has a competitive edge.
Its superior quality of goods is paramount in Gage Growth’s ambition to cultivate the best reputation and customer relations possible.
And the numbers tell us this strategy is working.
Impressive sales growth
In 2020, Gage Growth’s revenue rose an outstanding 1,972% year-over-year. And in Q420 it climbed 615% year-over-year.
This year, its impressive growth rate continues with record revenue of $17.6 million in Q121.
That’s a massive increase of 219% over their Q1 numbers for last year and 67.9% sequentially.
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Gage Growth already has impressive profit margins, but with its cultivation yields and efficiency increasing, there’s room for even more profit-taking.
It increases its cultivation yields and efficiency through its assets and from its contract grow partnerships.
One of the top brands Gage Growth is collaborating with includes the high-profile cult brand COOKIES.
With an international presence and loyal fanbase, COOKIES is one of the most authentic and revered lifestyle brands operating in the space today.
It was started by a top Bay Area rapper, Berner. And COOKIES also partners with several celebrities, including Snoop Dogg, Mike Epps, Wiz Khalifa, and Rick Ross.
Furthermore, its partnership with Gage Growth is exclusive in the Michigan area.
Most recently, the company announced its exclusive partnership with multi-platinum-selling, GRAMMY® Award and Golden Globe® Award-nominated recording artist Wiz Khalifa’s brand, Khalifa Kush (“KK”), to develop and launch a line of premium cannabis products in the state of Michigan.
This is another example of Gage Growth‘s ability to bring another high-caliber brand to the Michigan market, which is what makes them unique and differentiated from competitors.
Gage Growth has also partnered with other top brands, including Blue River, SLANG Worldwide, Lemonnade, Grandiflora Genetics, and Runtz.
These collaborations have helped the company hit the ground running by making an instant connection with consumers.
Its product lines for sale include more than 150 branded cannabis varieties and product lines.
The list is impressive, and there’s something for everyone. Indoor and sun-grown flower, pre-rolls, gel caps, vape carts, vape pens, rosin, wax, tinctures, capsules, transdermal patches, CBD flower, and much more.
But Gage Growth is also very excited about the growth of its in-house cultivation and production facilities.
In 2018 Michigan became the first Midwest state to legalize marijuana for adult use. This gives consumers the confidence to try the products knowing safety and quality are assured.
And now, Gage Growth is well on the way to conquering Michigan as the favorite dispensary chain in town.
2020 was a phenomenal year for the firm, and this year, growth is exploding. In fact, it’s gone from operating two stores last year to nine today, with a further five dispensaries in its portfolio. The company is targeting to open 20 or more locations by year-end.
Gage Growth sells direct to consumers via its dispensaries. And it includes the very first COOKIES branded dispensary outside of California.
By focusing on the overall customer experience from seed to sale, the company can ensure high quality through its supply chain.
Better still, it has control of much higher margins than selling wholesale or just operating dispensaries.
Michigan is fast becoming a central MJ state. April data showed it was moving into the top three states in the pot industry, alongside California and Colorado.
The legalization of cannabis is taking the industry by storm. In fact, it’s projected to add a whopping $160 billion to the US economy by 2025.
Last year, Michigan sold $985 million worth of cannabis product sales – a 3.5x jump year-over-year.
And this year’s numbers are even more exciting, with sales predictions coming in at $1.85 billion when annualizing the April sales.
Furthermore, in Q1 of this year, Gage Growth achieved an average basket size of $158 per sale. That far exceeds Michigan’s statewide average of $85.
Gage Growth is successfully implementing its aggressive growth plan, and sales prove this is going well. In fact, it hopes to have increased its total cultivation capacity to 3,000lbs/month this summer and 7,000lbs/month by the end of the year.
Fostering happiness and freedom from chronic pain
After the doom and gloom of the global pandemic and climate change worry, it’s no wonder depression and anxiety rates are rocketing.
Deemed a natural way to treat these problems, cannabis is fast becoming a popular solution.
More and more people are being given medical marijuana cards to get their much-needed medication quickly and legally.
As a result, Michigan is already thought to have over 250,000 medical marijuana patients registered.
The stigma surrounding MJ is waning, and regulation is easing. This is great news for mental health and cultural reform.
But that’s not all; cannabis is also being medically prescribed to provide much-needed chronic pain relief for long-term debilitating illnesses such as MS. Or as an alternative to opioid used in dealing with nerve damage and inflammation.
But cannabis is not a new solution to treat various ailments. In fact, way back in 1850, cannabis gained entry to the United States Pharmacopoeia as a medicine. This led to doctors recommending it as a treatment for depression, pain, and insomnia. It remained listed until 1942, by which time prohibition had crept into force.
Thankfully cannabis is now experiencing a renaissance and being recognized once more for its potent powers.
Savvy management team
Gage Growth’s CEO Fabian Monaco is a charismatic, likable character with a strong head for business. He’s a former investment banker with first-hand experience of taking an MJ company public.
With several years in the MJ game, he’s witnessed the industry shift from amateur free-for-all to established and credible brands gaining market share.
Along the way, he’s seen several large financing deals and acquisitions take place in the sector.
His hands-on and hardworking approach means he’s fully acquainted with business operations throughout the entire cannabis production process.
This quality experience thrilled and fascinated him, ultimately leading him to his current role at Gage Growth. He’s now been leading there for over three years, flanked by Gage Growth’s co-founders.
These co-founders are seasoned professionals in the cannabis space, and they, too, have gained a wealth of knowledge, experience, and connections in the sector.
Altogether, they run a tight ship with consumer experience always at the forefront of their ethos.
Even though Michigan is the team’s primary focus at this time, it’s got its sights set on becoming a multi-state operator with much more scope for expansion.
An undervalued acquisition target
Gage Growth has a $519 million fully diluted market cap. This seems significantly undervalued compared to its peers. It’s operating on an EV/ 2021 Sales value of ~3x, which is far below industry leaders.
Canopy Growth, for instance, operates on an EV/Sales ratio of 21.4x, and Tilray operates at 16.8x.
Download our special report on Gage Growth Corp.’s rapid rise in one of America’s top states in the industry and how early investors could profit
M&A action is prevalent in the cannabis sector as the leading players establish themselves and brands are brought together.
With its accelerated growth path, premium product, and enviable margins, Gage Growth makes a prime acquisition target.
Good times ahead
All-in-all, there’s a lot to like about Gage Growth’s vertically integrated business model.
It is now a leading operator in Michigan, which CEO, Fabian Monaco, believes will easily be among the top five largest cannabis markets in the United States this year.
Gage Growth has a high-quality portfolio of brands and licenses under its wing and profit margins far surpass wholesale MJ models.
On top of this, Gage Growth has been included in some of the leading cannabis-focused exchange-traded funds (ETF). This addition to the AdvisorShares Pure US Cannabis ETF (NYSE: MSOS) and Horizons US Marijuana Index ETF (NEO: HMUS) gives it serious credibility and enhanced status as a stock to watch.
Its share price is undervalued compared to industry peers, and its growth trajectory is both aggressive and impressive. The company has a solid team at the helm, steering it with credibility and integrity and a wealth of experience between them.
Accordingly, Gage Growth is an investment opportunity not to be missed in today’s green revolution, fusing the push for natural plant medicine and shifting drug policy.
Gage Growth’s end goal is to deliver Michigan’s best cannabis, and it’s well on the way to doing so.
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